The Rural Voice, 1987-12, Page 17MARKET UPDATE
lower imports by the Soviet Union and
Saudi Arabia.
U.S. corn stocks have declined, sor-
ghum carryout is down, oat production
carryover at almost a record low, and the
barley estimate is down from 356 mil-
lion bushels to 304 million bushels.
OILSEED CROPS
In 1987-88, a 6.6 million ton in-
crease in foreign oilseed output com-
bined with a 1.8 million ton rise in U.S.
output will push global oilseed produc-
tion to a record 203 million tons.
Foreign soybean production will
rise almost 2.4 million tons. The bulk of
increased foreign oilseed output will
occur in the U.S.'s largest soybean and
soybean export market, the EEC, whose
oilseed production will jump by 3.4
million tons, a 41 per cent increase.
EEC oilseed production has taken
off in recent years because high crush-
ing subsidies have sent payments two to
three times the world price to producers
for some oilseeds. As a result, the EEC
overall import demand for soybeans is
expected to fall by 0.8 million tons.
Through the first half of 1987/88,
U.S. sales of soybeans and soybean
meal will benefit from reduced availa-
bility in South America. Over the next
five months, Brazil is expected to im-
port soybeans and soybean oil to meet
domestic demand. So until about March
of 1988, the U.S. will have to supply the
bulk of world import demand.
In response to a continued strong
soybean -corn price ratio, U.S. competi-
tors are expected to increase soybean
area this fall. Both Argentina and Brazil
are expected to expand their soybean
area by six to seven per cent as arable
land is shifted out of corn production.
Argentine soybean exports will rise by
1.0 million tons. Because of this heavier
export competition and reduced EEC
needs, U.S. soybean exports will drop
eight per cent to 19.1 million tons.
Local corn and soybean basis con-
tinues to be under pressure, as most
storage facilities are completely filled.
Basis will not likely show much strength
until harvesting is completed.°
The information herein is taken from sources
that we believe to be reliable, but is not guar-
anteed by us as to accuracy or completeness.
Ag -Com Trading Inc., located in Exeter, is a
cash grain merchandising firm. Telephone
numbers are 235-2520 and 1-800-265-7046.
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The management
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LOGAN FORD TRACTOR SALES
Hwy. 7 & 19
St. Marys
519-349-2180
Hwy. #8, East
Mitchell
348-8467
DECEMBER 1987 15